While the supermarket classes are reining back their spending, the superyacht set are still splashing out on luxury leather goods and the finest champagnes.

LVMH, the world's largest luxury goods group, unveiled record revenues for the last year today as customers snapped up its brands, which range from Hennessy cognac to Christian Dior perfume, BeneFit cosmetics and fashion labels such as Donna Karan, Céline and Marc Jacobs.

The luxury goods market is booming again, despite widespread austerity measures in Europe and the US. Louis Vuitton had another record year, with double-digit revenue growth, and demand returned for luxury champagnes such as Dom Pérignon and Krug.

LVMH, whose brand portfolio also spans Fendi, Pucci and TAG Heuer, said sales had soared 19% to a record high of €20.3bn (£12.5bn) in 2010, up from €17.1bn the previous year. In the final three months of the year, revenues rose 20%. Profits from continued operations exceeded €4bn for the first time, with profits at the group's watches and jewellery division doubling.

LVMH's chairman and chief executive, Bernard Arnault, described 2010 as a "great vintage" for the company.

Sales of prestige cars have also risen rapidly this year, powered by a surge in demand from China. Last month Porsche said sales in 2010 were up 25% last year to 95,000. Some 63% more Porsches – or a total of 14,785 vehicles – were driven away from Chinese showrooms. The best-selling model, which accounts for more than half of Chinese sales, is the Cayenne SUV.

The rival German manufacturer BMW recently reported similarly buoyant business, with worldwide sales of its Rolls-Royce marque up 171% to 2,711.

A report from Barclays Capital says China now accounts for 12% of global luxury goods sales. This is set to rise further as the country's market is forecast to grow a further 20-30% a year.

LVMH wines and spirits bounced back from a decline in 2009 to record a 19% rise in revenues to €3.3bn. All champagne brands saw a strong recovery with particularly strong growth for the prestige cuvées – especially Dom Pérignon and Krug. Hennessy cognac, which did well throughout the crisis, is still selling strongly.

Late last year LVMH snapped up 20% of Hermès, the rival French luxury group. The family-controlled Hermès regards Arnault's interest as unwelcome and last week Hermès' chief executive, Patrick Thomas, said the stake was "too much".

Today LVMH's Arnault said he hoped to co-operate with the business, which is regarded as the ultimate luxury label. "We can bring them [Hermès] a number of advantages, both strategically and operationally, without anything in return other than our presence as a shareholder," said the LVMH boss.

However, he also warned: "We are a pacifist shareholder, which does not mean that we will be a passive shareholder."